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The MGM Macau casino resort, in Macau, China.
MGM Resorts represents the gambling sector’s most compelling option in the new year, according to J.P. Morgan.
Though the company had a turbulent 2017, analyst Joseph Greff told clients that investors are underestimating MGM and that the company is likely to surpass expectations during earnings.
“We believe MGM represents the gaming sector’s most attractive risk/reward for 2018, as it is now the best absolute value play in gaming,” wrote Greff on Tuesday. “We continue to like the stock here as we believe investor expectations are reasonably low – we’d say almost negative, but probably more in the ‘I don’t give a hoot’ camp.”
The analyst, who has an overweight rating on the casino resort company, encouraged investors to consider adding exposure to MGM.